Brewskis In The Bond Pits-------AB InBev To Tap Market For $46 Billion Of Takeover Bonds

By Quartz. Posted On Wednesday, January 13th, 2016

AB InBev, owner of a massive portfolio of beer brands including Budweiser and Becks, is expected to sell $46 billion worth of bonds to finance its purchase of fellow beer giant SAB Miller, per the Financial Times (paywall). According to Dealogic data, that would be the second-biggest offering ever, behind Verizon’s $49 billion deal in 2013 that landed it the other half of Verizon Wireless.

However, in value terms, again by extrapolating Dealogic data, the total value of this year’s M&A spend is on track to reach $4.7 trillion. That’s higher than 2007’s record $4.6 trillion. The soaring value of this year’s bumper M&A spend then is the result of mega-deals; the mean average value of each merger or acquisition this year is $125.4 million, well above the average values seen in any other year since at least 2000:

Indeed, global borrowers have taken advantage of the post-crisis era’s low rates to stock up on debt, much of it financing M&A.

And given the right circumstances, investors are more than happy to hand over gobs of cash for it. While AB InBev had originally sought roughly $30 billion, the FT reported that there was $120 billion in orders from investors. These beer bonds are just sating that thirst.

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